Adding a Partner As of February 15, 2014 the capital balances and the profit/loss ratios in the MAD partnership were as follows. Profit/ Capital Loss% MAD Partnership Balances Ratio L. Meechum 562,500 5 D. Assad 50,000 4 D. Dong 37,500 3 The next day, on February 16, 2014 S. Dionne was admitted to the MADD partnership by investment. After Dionne's admission, the total capital partnership is $170,000, and Assad's ownership interest has been reduced from 1/3 to 30% of total partnership capital. Dong's and Meechum's ownership interests have also been reduced proportionately. Required: Answer the following questions. 1. How much was Dionne's cash investment in the partnership? 2. What was the total bonus allocated to the old partners? 3. What is the balance in each partner's capital account after Dionne''s admission to the partnership? 4. Why would a new partner be willing to pay a bonus to the existing partners in order to join a partnership? Give an example of a situation where this might happen. 5. Every time a new partner is admitted to a partnership, it_is necessary to completely close the accounting records of the existing partnership and start the new records for the new partnership? Do you agree or disagree? Explain